Keywords Studios PLC (AIM:KWS, OTC:KYYWF) has acquired multiplayer-focused video game studio The Multiplayer Group (MPG) for £76.5 million as part of a strategic expansion of Keywords’ creative segment.
Formerly owned by Improbable, Nottingham-based MPG has worked with some of the world's best-known studios and publishers including Activision Blizzard, Bethesda, Zenimax, Epic and 2K.
MPG’s 360-strong team provides co-development and full-game development for its clients and also has functions working on data science, new technology and AI.
The all-cash acquisition was funded via Keywords’ existing credit facility and is expected to deliver double-digit percentage revenue growth in 2024, with margins in line with those of Keywords' Create division.
"We are thrilled to welcome the MPG team to Keywords,” Keywords’ chief executive Bertrand Bodson commented. “MPG is a business that we have long admired for its high-quality work, blue-chip client base, deep experience in developing AAA multiplayer games and its use of technology and data analytics.
“This is another important step in building out our platform and expanding our offering to encompass specialised multiplayer game development at scale, which is increasingly in demand for live services.”
Andy Norman, chief executive of MPG, added: "With Keywords, we believe we can continue to lead and grow multiplayer innovation, bringing the MPG ethos to more customers and games.
“We look forward to working closely with Keywords and driving growth both in MPG and across the enlarged Keywords group.”
The transaction is expected to be EPS accretive in its first full year post acquisition and fall within the Keywords’ targeted valuation range of five to seven times EBITDA.